Have you ever analysed your workflows to find out what’s making you money and what’s causing write-offs?
In nine out of ten cases write-offs are the result of poor workflows and not being able to recover time spent sorting out a client’s data file.
Unfortunately, clients don’t value the work you put into deciphering their attempts to ‘balance the books’. To them, you’re just the person who prepares their tax return. After all, they’ve done all the hard work entering the data into their computer, right? You just need to fill in the tax return.
Xero and other cloud-based accounting systems have helped the situation by using single ledgers and downloading statements directly from the banks. But if the data isn’t coded and entered correctly you’ll still have issues sorting out their files. Garbage in, garbage out.
So what can you do?
The answer is simple: take control of the data, and make sure it’s processed properly. Here’s how:
- Migrate the client on to a cloud-based product (if they’re not on one already)
- Get the data professionally prepared by either:
- offering a bookkeeping service as part of your annual services
- introducing the client to a local bookkeeper you know is proficient in the product you’ve chosen (if you can’t find one then we can introduce you to one of our Zerobooks bookkeeping partners to help)
- Make sure the bookkeeper delivers the data in a format you can use to make your own processes more effective.
Offering clients a bookkeeping service as part of their annual package is a strategy that works quite well. You can offer the service, and then outsource/subcontract the tasks to someone like Zerobooks or one of our bookkeeping partners.
And here’s what you get in return:
- You increase your income from the client (with the margin you have on the bookkeeping).
- The clients sees you taking on a task they usually hate doing, and freeing up their time.
- The data arrives in a consistent, uniform format, which means you don’t waste time sorting through it.
- You still charge the same for the tax return (the client has always paid this amount to get their tax return prepared). But you spend less time on their file, resulting in fewer write-offs and a higher average hourly rate.
- You increase your internal capacity, which means you can offer the client additional value-add reporting or business advisory services.
Next time you’re working late trying to sort out a client’s file the night before the lodgement deadline, ask yourself one question: “Is this why I became an accountant?”
And if you answer “No”, then you need to get in touch with us here at Zerobooks. We’ll show you how to eliminate your write-offs, and get back to the work that made you want to become an accountant in the first place.